A section of the Texas tax code that is used by local governments as lucre to attract corporate relocations but that often ends up pitting city against city and school district against school district is set to expire.
Based on hearings last week, there will likely be calls to reinstate it in the next Legislature. That would be a mistake....
In 2015, Gov. Greg Abbott complained that each job created by this program cost taxpayers $341,000. Using Abbott’s calculation, the Houston Chronicle updated the numbers last year: now every job created by a 313 incentive costs $1.1 million, the paper reported.
What’s more, a 2018 study by the W.E. Upjohn Institute for Employment Research found that 313 incentives were the deciding factor in fewer than 25% of relocations, meaning three quarters of the time, the relocation would have happened anyway. Taxing districts are leaving money on the table and cities are fighting cities in a game that actually hurts their residents and students....
in many cases, the choice is not between attracting a company to Texas or failing to do so. The choice is between attracting a company to Taylor or Round Rock; Sherman or Plano.
That highlights another problem: 313 favors districts where it’s easiest to acquire land and build facilities. In an analysis by Dallas Area Interfaith, the losers under 313 are large, urban school districts like Dallas ISD.
[Graphic: Dallas Morning News]
"Imagination. With empty lots and abandoned swaths of land, we had to imagine something else."
That is how the Rev. David Brawley, of St. Paul Community Baptist Church and East Brooklyn Congregations/Metro IAF, described the start of what has emerged as "the most consequential community development effort in the country."
Ted Koppel, with CBS Sunday Morning, interviewed Metro IAF leaders Rev. Brawley and Sarah Plowden of St. Paul, as well as affordable housing developer Kirk Goodrich to tell the story of how imagination and sustained institutional power resulted in a $1.5 Billion wealth-building equity strategy for first-time homeowners in low-income African-American and Latino neighborhoods in East Brooklyn, DC, Jersey City, Chicago and Baltimore.
It took imagination and power to secure commitments from Democratic Mayor Ed Koch for the cheap purchase of empty city lots and subsidies for building -- as well as from Republican Mayor Rudy Giuliani to ensure there was enough money in the budget for the Spring Creek development.
Over 6,500 first-time homeowners have benefited from Nehemiah housing. Physical homes may be the foundation, but it is homeowners who have breathed new life into their communities, demonstrating the vitality of the American Dream.
In photos at right: Matilda Dyer from St. Paul's shares her story; affordable housing developer Kirk Goodrich explains why the Nehemiah strategy is the "most consequential community development effort in the country"; Matilda Dyer, describes how her initial application for home ownership was an 'act of faith'; and Sandra and Armando Martinez detail their journey to ownership of the home their call their "palace."
[Image Credit: CBS News Sunday Morning]
Nehemiah: Making the American Dream Possible for First-Time Homeowners, CBS News Sunday Morning
The American Dream: One Block Can Make All The Difference, National Public Radio [pdf]
Behind Brooklyn Neighborhood’s Rebirth, a Woman Who Joined in a Dream, New York Times [pdf]
While no formal vote was held, the council said it wanted to see more of a model presented by Common Ground, a non-partisan group of religious and non-profit organizations in Solano and Napa counties, which is advocating for a three-prong approach: a civilian police commission, inspector general, and community police review agency.
The commission made up of Vallejo residents would be tasked with overseeing a review agency, which would investigate officer use of force, including fatal shootings by officers, any in-custody deaths, and allegations of racial profiling by officers....
“We believe the above components provide the transparency and the community involvement needed to establish police oversight and are a critical step in restoring trust between law enforcement and the community,” said Renee Sykes, a member of Common Ground’s public safety committee. “The national spotlight is still on Vallejo, and it will not be shut off until there is a concerted effort on everyone’s part to make a change.”
After months of work with leaders in the business, non-profit and education communities, Mountain Voices Project and the Glenwood Community Housing Coalition made a significant step forward in pursuing an investment in local workforce housing.
At the urging of MVP, the Glenwood Springs City Council advanced a ballot proposition for a 2.5% increase in the lodging tax to invest in workforce housing with a 6-1 vote. 15 MVP leaders representing seven member institutions packed the city council chambers during deliberation.
This follows a civic academy at Good Shepherd Lutheran Church where residents and stakeholders learned about the potential impact of this initiative. If approved by voters, the Lodging Tax will increase from 2.5% to 5%, and generate new revenue dedicated for workforce housing strategies.
Leaders plan to educate voters about the ballot proposition in advance of the election.
Lodging Tax to Go to Voters in Glenwood Springs This Fall, Post Independent [pdf]
[Excerpt from San Antonio Report]
U.S. Secretary of Labor Marty Walsh heaped praise on San Antonio’s city government for its expansive workforce development program, often called the largest of its kind in the country. He said he wishes the federal government could do more.
At a roundtable discussion with local industry leaders and city officials Monday, Walsh called SA Ready to Work — the city’s $230 million program aiming to train thousands of low-wage workers for middle-class careers over the next five years — innovative and exemplary for its heavy collaboration with industry leaders.....
SA Ready to Work opened for enrollment in May, though many pre-registered. In the nearly four months since then, slightly more than 5,400 applicants have signed up — nearly fulfilling what the city anticipated to be enrollment through its entire first year.
[Photo Credit: Alamo Colleges]
Labor Secretary Would Like to See Bigger Federal Investments in Ready to Work, San Antonio Report [pdf]
U.S. Secretary of Labor visits the Alamo Colleges District, Alamo Colleges District [pdf]
After hundreds of conversations among workers, labor allies and elected officials, City of Austin voted on a budget that raised the living wage floor for their workers to $20/hr including contracted workers and those employed by corporations benefiting from City tax subsidies. At the urging of Central Texas Interfaith, the City of Austin furthermore expanded emergency assistance for struggling renters and sustained spending on essential human development initiatives including long-term workforce development and after-school programs that the organization had pioneered.
Specifically, the Council approved:
- $20/hour base pay for all City of Austin staff, contract employees and employees of corporations receiving City tax subsidies
- $8 Million in emergency rental assistance
- $3.1 Million for long term workforce development
- Increased funding for AISD programs including Parent Support Specialists and Primetime After School programs
Central Texas Interfaith commended the Mayor and the City Council for investing in these important initiatives before turning their attention to the County budget.
Voters in Arizona have the opportunity with Proposition 308 to overturn a law that prevents Dreamers access to in-state tuition at Arizona universities. Rabbi John A. Linder, a clergy leader with Valley Interfaith Project makes the case for in-state tuition for Arizona Dreamers.
Prop. 308 would finally let Dreamers — hard-working undocumented young people brought to Arizona from other countries as infants or children through no choice of their own — pay the same in-state tuition rates at Arizona public colleges and universities as their high school peers.
Right now, some 2,000 Dreamers have to pay up to three times as much as their peers. That’s not smart and it’s not right..…
Again, these are OUR kids — Arizona kids. It’s simply not fair that they’ve gone to school all their lives alongside other Arizona kids, under the illusion of fairness, only to find that they’re shut out of an affordable higher education merely because they came here undocumented as children. They had no say in the matter! And yet despite that shaky footing, they’ve proven to be among our state’s finest scholars — and hardest workers.
[Photo courtesy of Rabbi John Linder]
Come December 31, 2022, the law that had allowed [major corporations] to keep more than $10 billion in school property tax revenue off the ledgers over two decades will be no more. But companies wasted little time grieving. There was still plenty of life to live after the session ended sine die.
Since then, companies have applied for close to 500 tax break deals for projects all over the state—for everything from wind and solar farms, oil and gas processing, carbon capture, and biodiesel production. By comparison, the Texas comptroller received an average of 90 applications annually in the past decade.
“It’s like hogs at the trough,” said Bishop John Ogletree, a leader with the Houston chapter of the [Texas] Industrial Areas Foundation, a faith-based coalition that helped bring down Chapter 313. “Multi-billion-dollar oil, gas, and tech corporations asking for school districts and taxpayer dollars to bolster their profits. If these applications get approved, it will blow a hole in our state and school district budgets for a generation to come.”
Unsure whether the state will revive or replace the program in the 2023 session, companies have grown increasingly aggressive in trying to lock in future tax breaks for speculative projects that may—or may not—come to fruition many years out.
No More Hogs at the Trough-Containing Corporate Subsidies in Texas, Nonprofit Quarterly [pdf]
The Sun is Setting on Chapter 313 Incentives, Austin Business Journal
Companies Lining Up for Future Tax Breaks as Texas Incentive Program Nears End, Dallas Morning News [pdf]
What Could Epic Samsung Expansion Mean for Texas?, Austin Business Journal
Point Isabel School District Rejects Texas LNG Tax Abatement, Brownsville Herald [pdf]
'Smoke and Mirrors' or Long-Range Planning? Possible Samsung Tax Breaks Stir Debate, Austin American Statesman [pdf]
NXP Seeking Up To $140 Million in Tax Breaks for School Districts, Austin-American Statesman [pdf]
Chapter 313 Incentives: What They Are and Why They're Suddenly the Talk of the Town, Austin Business Journal [pdf]
Oped: Don't Ask Texas Schoolchildren to Fund Your Corporate Expansion, Austin Chronicle [pdf]
Statement on Austin ISD and Round Rock ISD Chapter 313 Votes, Central Texas Interfaith
In response to calls for change by their workers and Coloradans for the Common Good, the Jefferson County School Board approved a $3/hr increase to the minimum wage of all Educational Support Professionals (ESP). Nearby, the Denver Federation ratified a contract that increases the minimum wage to $20/hr for para-educators and over $18/hr for nutrition employees. This equates to tens of millions of dollars for working families in the metro area, and required coordinated action between unionized educators and Coloradans for the Common Good.
Last fall, CCG leaders organized an accountability assembly, leveraging commitments from every JeffCo School Board candidate at the time to support wage increases for ESPs if elected. When it became clear more pressure was needed, leaders returned to the JeffCo Board this spring.
At the same time, CCG organized a rally at Valdez Elementary with over 350 educators, parents, and community members to push for wage increases in Denver Public Schools (DPS). Leaders soon followed up with a press conference where the DPS Board President, Vice President, and an additional school board member committed to increasing wages.
[Photo Credits: (Top) Olivia Sun, Colorado Sun; (Right) Helen Richardson, The Denver Post]
This week, Polk County Supervisors approved AMOS' proposal to invest $1.8 million in ARPA funds to diversify and retain mental health providers through a scholarship and loan forgiveness program. This win is the result of over 10 months of organizing work including:
- Hundreds of conversations in Mental Health Civic Academies that surfaced workforce needs, including to fully staff the Children's Mental Health Crisis system AMOS worked so hard to secure
- A 'Mental Health Provider Summit' in December to understand providers' specific workforce needs and barriers
- 100+ AMOS leaders contacting Polk County supervisors in support of AMOS' mental health workforce proposal
- 4 AMOS leaders testifying at a Polk County Supervisors meeting to share the need for this investment, particularly for refugee and immigrant communities
- AMOS representation at mental health task force meetings by a First Unitarian leader
AMOS leaders plan to continue to work with Polk County to ensure that the funds are administered to maximize accessibility and impact.